In a recently released documentary, Jared Bernstein, the chief economic adviser to President Biden, faced difficulties in articulating the principles of modern monetary theory that form the foundation of “Bidenomics” and extensive government spending. Bernstein exhibited moments of hesitation and contemplation as he endeavored to elucidate the rationale behind the U.S. government’s borrowing practices despite its ability to independently print its own currency.
“Like you said, they print the dollars. So why, why does the government even borrow?” an interviewer asked Bernstein.
“Well, um, the uh … so the … I mean, again, some of this stuff gets — some of the … language that — some of the language and concepts are just confusing. I mean, the government definitely prints money and it definitely lends that money, which is why … um … the government definitely prints money and then it lends that money by, uh, by selling bonds. Is that what they do? … They, they uh … they, yeah, they um … they sell bonds … yeah, they sell bonds. Right? Since they sell bonds and then people buy the bonds and lend them the money,” Bernstein said in the documentary, “Finding The Money.”
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CLIP: We hear a lot about the national debt.
But do currency-issuing governments really ‘borrow' their own currencies?
The answer might surprise you.Watch FINDING THE MONEY documentary, In Theaters and On Demand TOMORROW May 3: https://t.co/H1e5fEuV7t pic.twitter.com/MA3AGIcCXi
— FINDING THE MONEY Film (@FindingMoneyDoc) May 2, 2024
The consultant has emerged as a key figure in advocating for the economic policies of President Joe Biden, known as “Bidenomics,” with the goal of addressing the unprecedented inflation rates during his tenure. Despite facing resistance from TV hosts, the White House moved to discontinue the use of this term due to negative public opinion on the economy, as per Axios. Additionally, he supported the Biden administration’s initiative for student loan forgiveness, offering $10,000 for individuals earning less than $125,000 annually and $20,000 for Pell Grant recipients.